The Nasdaq took quite a beating yesterday, as shares of Google
Google has been a bad boy lately
Google has been acting up quite a bit recently, having just been fined $25,000 by the Federal Communications Commission for its recalcitrance during the commission's investigation of the manner in which Google obtained personal information to develop Street View. To further sour my opinion on the company, Google announced its stock-split news in its latest numbers report, which would effectively create a new, non-voting class of stock.
This new "C" class of stock has many investors annoyed, and analysts are opining that this move represents a way to split the stock while preserving all the power in the hands of the current Google trinity of Larry Page, Sergey Brin, and Eric Schmidt. The handling of this new class is causing confusion as well, since the new shares must trade under a different ticker symbol. Since these shares are obviously inferior to the Class "A" stock, the latter will probably continue to be representative, possibly driving investors to sell Class "C" to obtain Class "A." Confused yet? So am I, and I wonder why Google didn't just pay a dividend, instead of stirring up this dust storm.
Then, of course, there is the lawsuit Oracle
Apple drops, but reasons are less clear
Apple hasn't been particularly naughty lately, so why the plunge? There are a few theories out there, including one from Barron's that Apple is being trimmed to make way for Texas Instruments'
Others think that gossip concerning the arrival of a low-priced mini-iPad later this year could be the problem, but that rumor's been around for a while. Other observers seem to feel think the decline is just a case of "what goes up must come down" and is simply a correction to a stock that has been red-hot for several months now.
Fool's take
Whether there is a good reason or not for these recent declines, I would be inclined to think of these dips as temporary, and a good time to consider entry into either one if that has been a goal of yours. Neither of these giants is going anywhere soon, so savvy tech investors will think of this stock setback as a gift and act accordingly.
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